Fundamentals of Information Systems, Seventh Edition

Transcription

1 Chapter 1 An Introduction to Information Systems in Organizations 1

2 Principles and Learning Objectives The value of information is directly linked to how it helps decision makers achieve the organization s goals Distinguish data from information and describe the characteristics used to evaluate the quality of data 2

3 Principles and Learning Objectives (continued) Knowing the potential impact of information systems and having the ability to put this knowledge to work can result in a successful personal career, organizations that reach their goals, and a society with a higher quality of life Identify the basic types of business information systems and discuss who uses them, how they are used, and what kinds of benefits they deliver 3

4 Principles and Learning Objectives (continued) System users, business managers, and information systems professionals must work together to build a successful information system Identify the major steps of the systems development process and state the goal of each 4

5 Principles and Learning Objectives (continued) The use of information systems to add value to the organization can also give an organization a competitive advantage Identify the value- added processes in the supply chain and describe the role of information systems within them Identify some of the strategies employed to lower costs or improve service Define the term competitive advantage and discuss how organizations are using information systems to gain such an advantage 5

6 Principles and Learning Objectives (continued) IS personnel is a key to unlocking the potential of any new or modified system Define the types of roles, functions, and careers available in information systems 6

7 Why Learn About Information Systems in Organizations? Information systems used by almost every imaginable profession Entrepreneurs and small business owners Sales representatives Managers Financial advisors Information systems: Indispensable tools to help you achieve your career goals 7

8 Introduction Information system (IS): A set of interrelated components that collect, manipulate, store, and disseminate data and information and provide feedback to meet an objective Businesses: Can use information systems to increase revenues, improve customer service and reduce costs 8

9 Data, Information, and Knowledge Data: Raw facts Information: Collection of facts organized and processed in such a way that they have value beyond the individual facts Process: Set of logically related tasks performed to achieve a defined outcome Knowledge: Awareness and understanding of a set of information and the ways information can be made useful 9

10 Data, Information, and Knowledge (continued) 10

11 Data, Information, and Knowledge (continued) 11

12 12

13 The Value of Information Directly linked to how it helps decision makers achieve their organization s goals Valuable information: Can help people and their organizations perform tasks more efficiently and effectively 13

14 What Is an Information System? Information system (IS) is a set of interrelated elements that: Collect (input) Manipulate (process) Store Disseminate (output) data and information Provide a corrective reaction (feedback mechanism) to meet an objective 14

15 Input: Input, Processing, Output, Feedback Activity of gathering and capturing raw data Processing: Converting data into useful outputs Output: Producing useful information Feedback: Information from the system that is used to make changes to input or processing activities 15

16 Computer- Based Information Systems Single set of hardware, software, databases, telecommunications, people, and procedures: That are configured to collect, manipulate, store, and process data into information Technology infrastructure: Includes all hardware, software, databases, telecommunications, people, and procedures configured to collect, manipulate, store, and process data into information 16

20 Web: Computer- Based Information Systems (continued) Network of links on the Internet to documents containing text, graphics, video, and sound Intranet: Internal network that allows people within an organization to exchange information and work on projects Extranet: Network that allows selected outsiders, such as business partners and customers, to access authorized resources of a company s intranet 20

21 Computer- Based Information People: Systems (continued) The most important element in most computer- based information systems Procedures: Include strategies, policies, methods, and rules for using the CBIS 21

22 Business Information Systems Most common types of information systems: Those designed for electronic and mobile commerce, transaction processing, management information, and decision support Some organizations employ: Special- purpose systems, such as virtual reality, that not every organization uses 22

25 Electronic and Mobile Commerce (continued) Mobile commerce (m- commerce): The use of mobile, wireless devices to place orders and conduct business E- commerce: Offers many opportunities for streamlining work activities Electronic business (e- business): Uses information systems and the Internet to perform all business- related tasks and functions 25

26 Electronic and Mobile Commerce (continued) 26

27 Enterprise Systems: Transaction Processing Systems and Enterprise Transaction: Resource Planning Any business- related exchange, such as payments to employees and sales to customers Transaction processing system (TPS): Organized collection of people, procedures, software, databases, and devices used to perform and record completed business transactions 27

29 Information and Decision Support Systems Management information system (MIS): Organized collection of people, procedures, software, databases, and devices that provides routine information to managers and decision makers Manufacturing, marketing, production, finance, and other functional areas are supported by MISs and are linked through a common database 29

30 Information and Decision Support Systems (continued) 30

31 Information and Decision Support Systems (continued) Decision support system (DSS): Organized collection of people, procedures, software, databases, and devices that support problem- specific decision making Can include: A collection of models used to support a decision maker or user (model base) A collection of facts and information to assist in decision making (database) Systems and procedures (user interface or dialogue manager) that help decision makers and other users interact with the DSS 31

32 Information and Decision Support Systems (continued) Decision support system (DSS) can include: Can include: A collection of models used to support a decision maker or user (model base) A collection of facts and information to assist in decision making (database) Systems and procedures (user interface or dialogue manager) that help decision makers and other users interact with the DSS Database management system to manage database Model management system to manage the model 32

37 Specialized Business Information Expert systems: Systems (continued) Give computer ability to make suggestions and function like an expert in a particular field Virtual reality and multimedia: Virtual reality: Simulation of a real or imagined environment that can be experienced visually in three dimensions Augmented reality superimposes digital data over photos or images 37

38 Specialized Business Information Systems (continued) Virtual reality and multimedia (continued): Multimedia: Can include photos and images, the manipulation of sound, and special 3D effects 38

39 Systems Development Systems development: The activity of creating or modifying existing business systems Outsourcing: Allows a company to focus on what it does best and delegate other functions to companies with expertise in systems development System development often outsourced 39

40 Systems Development (continued) 40

41 Organizations and Information Systems Organization: Formal collection of people and other resources established to accomplish a set of goals Constantly uses money, people, materials, machines and other equipment, data, information, and decisions Providing value to a stakeholder is the primary goal of any organization 41

42 Organizations and Information Systems Value chain: (continued) Series (chain) of activities that includes inbound logistics and warehouse and storage, production and manufacturing, finished product storage, outbound logistics, marketing and sales, and customer service 42

43 Organizations and Information Systems Supply chain management (SCM): Determines: (continued) What supplies are required for value chain What quantities are needed to meet customer demand How supplies should be processed into finished goods and services How shipment of supplies and products to customers should be scheduled, monitored, and controlled 43

44 Organizations and Information Systems (continued) 44

45 Organizations and Information Systems (continued) Customer relationship management (CRM) programs: Help companies manage all aspects of customer encounters including marketing and advertising, sales, customer service after the sale, and programs to retain loyal customers CRM software can be purchased as a service and delivered over the Internet or can be installed on corporate computers 45

46 Organizations and Information Innovation: Systems (continued) Organizations continuously improving their operations by looking for fresh, new ideas Can bring cutting- edge products and services that create new revenue streams Can explore new markets and business approaches Some IS departments are creating separate groups to explore new, innovative ideas 46

47 Organizational Culture and Change Culture: Set of major understandings and assumptions shared by a group Organizational culture: Major understandings and assumptions May not be formally stated or documented Organizational change: How organizations plan for, implement, and handle change 47

48 User Satisfaction and Technology Acceptance Technology acceptance model (TAM): Specifies the factors that can lead to better attitudes about the information system, along with higher acceptance and usage Factors include: Perceived usefulness Ease of use Quality Degree to which organization supports its use 48

49 Competitive Advantage Significant and (ideally) long- term benefit to a company over its competition Can result in higher- quality products, better customer service, and lower costs Organization often uses its information systems to help gain a competitive advantage 49

50 Factors That Lead Firms to Seek Competitive Advantage Porter s competitive forces model: Rivalry among existing competitors Threat of new entrants Threat of substitute products and services Bargaining power of buyers Bargaining power of suppliers The more these forces combine in any instance, the more likely firms will seek competitive advantage 50

52 Strategic Planning for Competitive Advantage (continued) Other strategies: Growth in sales First to market Customizing products and services Hiring the best people Innovation 52

53 Performance- Based Information Systems Major stages in the use of information systems: Cost reduction and productivity Competitive advantage Performance- based management 53

54 Return on Investment and the Value of Information Systems Return on investment (ROI): One measure of IS value Investigates the additional profits or benefits that are generated as a percentage of the investment in IS technology Earnings growth: The increase in profit that the system brings 54

55 Return on Investment and the Value of Information Systems (continued) Market share and speed to market: The percentage of sales that a product or service has in relation to the total market Customer awareness and satisfaction: Performance measurement is based on feedback from internal and external users Total cost of ownership: The sum of all costs over the life of the information system 55

57 Careers in Information Systems Career opportunities in IS are expected to increase and IS budgets expected to surge Mobile applications will be a key factor in this surge IS workers need communication skills, detailed knowledge of the organization, and understanding of how information systems can help the organization achieve its goals 57

58 Roles, Functions, and Careers in IS Primary responsibilities in information systems: Operations: System operators primarily run and maintain IS equipment Systems development: Focuses on specific development projects and ongoing maintenance and review 58

59 Roles, Functions, and Careers in IS Primary responsibilities in information systems (continued): Support: Provides user assistance in hardware and software acquisition and use, data administration, user training and assistance, and Web administration Information service units: A miniature IS department attached and directly reporting to a functional area in a large organization 59

60 Other IS Careers New and exciting careers have developed in IS consulting, training, sales, repair, IS customer service, and IS entrepreneurs Other IS career opportunities include being employed by technology companies, such as: Microsoft (www.microsoft.com), Google (www.google.com), Dell (www.dell.com), and many others 60

61 Finding a Job in IS Developing an online résumé can be critical to finding a good job Job search approaches: On campus visits Referrals from professors, friends, and family members The Internet: Online job sites and company Web sites Social networking sites and blogs 61

63 Summary The value of information is directly linked to how it helps people achieve organizational To be valuable, information must have several characteristics Four basic types of information systems: E- commerce and m- commerce, TPS and ERP, MIS and DSS, and specialized business information systems 63

64 Summary (continued) Systems development is the activity of creating or modifying existing business systems Organization is a formal collection of people and various other resources established to accomplish a set of goals Value- added processes increase the relative worth of the combined inputs on their way to becoming final outputs of the organization 64

IntroductiontoManagementInformationSystems Summary 1. Explain why information systems are so essential in business today. Information systems are a foundation for conducting business today. In many industries,

Chapter 2 INFO1400 Review Questions 1. What are business processes? How are they related to information systems? Define business processes and describe the role they play in organizations. A business process

1. Global E Business and Collaboration Lecture 2 TIM 50 Autumn 2012 Objective of the Learning The Major Feature of Business Systems Performance of Business Organization Levels of Business management The

INTRODUCTION - Information Systems & Technology (Compulsory) This is one of the 4 courses designed for Semester 1 of Bachelor of Information Technology (BIT) Degree program. Information Systems and Technology

Chapter 2 Global E-Business and Collaboration 2.1 Copyright 2011 Pearson Education, Inc. STUDENT LEARNING OBJECTIVES What are the major features of a business that are important for understanding the role

Introduction to Information System Information Systems The Role of Information Systems in a Business Data versus Information Information Systems Definition Computer-Based Information System Business Information

Chapter 6 Developing Business / IT Strategies McGraw-Hill/Irwin Copyright 2008, The McGraw-Hill Companies, Inc. All rights reserved. 2-2 Learning Objectives Discuss the role of planning in the business

BUS 516 Computer Information Systems Global E-business and Collaboration Business Functions Business Processes Collection of activities required to produce a product or service These activities are supported

Global E-business and Collaboration Content Define and describe business processes and their relationship to information systems. Evaluate the role played by systems serving the various levels of management

Information Systems Classification Evolution of Information System The first business application of computers (in the mid- 1950s) performed repetitive, high-volume, transaction-computing tasks. The computers

IT FOR BUSINESS AND FINANCE BUSINESS PROCESSES and INFORMATION SYSTEMS SYSTEM (definition) A group of interacting, interrelated, or interdependent elements forming a complex whole presenting the following

Chapter 1 Business Information Systems in Your Career 1.1 2007 by Prentice Hall STUDENT LEARNING OBJECTIVES How are information systems transforming business and what is their relationship to globalization?

INFO 1500 Introduction to IT Fundamentals Learning Objectives 3. Information Systems and Organisational Issues 1. Identify and describe important features of organizations that managers need to know about

INFO 1500 Introduction to IT Fundamentals 2. Information systems and business processes Learning objectives Define and describe business processes and their relationship to information systems. Evaluate

Information Systems and Technologies in Organizations Information System One that collects, processes, stores, analyzes, and disseminates information for a specific purpose Is school register an information

Chapter 2 Information Systems in the Enterprise 2.1 2006 by Prentice Hall OBJECTIVES Evaluate the role played by the major types of systems in a business and their relationship to each other Describe the

CHAPTER 11 INTERNATIONAL STRATEGY AND ORGANIZATION LEARNING OBJECTIVES: 1. Explain the stages of identification and analysis that precede strategy selection. 2. Identify the two international strategies

Systems Analysis and Design in a Changing World, sixth edition A-1 Online Chapter A The Role of the Systems Analyst Table of Contents Chapter Overview Learning Objectives Why read this chapter? This chapter

Supply Chain development - a cornerstone for business success Agenda 1. Supply chain considerations 2. Benefits of a developed SCM strategy 3. Competitive advantage by using a LSP 4. CRM/SCM key to business

333 APPENDIX A STUDY ON E-COMMERCE APPLICATIONS IN INDUSTRIAL SUPPLY CHAIN MANAGEMENT QUESTIONNAIRE Please tell us about your company: 1 Name of your Company 2 City Chennai Bangalore Coimbatore 3 Business

Logistics Logistics is generally the detailed organization and implementation of a complex operation. In a general business sense, logistics is the management of the flow of things between the point of

Monetizing Mobile Applications How to maximize investment, move up the value chain and expand into new markets Strategic White Paper Network providers are well aware of the challenges presented by today

0 Learning Objectives: 11.1 Describe the advantages and disadvantages of the most common forms of business ownership. 11.2 Identify the stakeholders of a business and describe why they are important. 11.3

Introduction to Information Management IIM, NCKU Define complementary assets and explain how they ensure that information systems provide genuine value to an organization. Describe the different academic

INTRODUCTION - Information Systems & Technology This is one of the 4 courses designed for Semester 1 of Bachelor of Information Technology (BIT) Degree program. Information Systems and Technology course

1 UNIT I OVERVIEW OF E- COMMERCE Definition of E-Commerce: The use of electronic transmission medium ( telecommunications ) to engage in the exchange including buying and selling of products and services

College of Science, Engineering and Technology School of Computing Learn without limits. college of science, engineering and technology WELCOME TO THE SCHOOL OF COMPUTING The vision of the school is to

E-Business, E-Commerce, and Information Systems Databases & The Digital Economy E-Business & E-Commerce There was a difference between the Old Economy and the New Economy The first consisted of traditional

Discover How a 360-Degree View of the Customer Boosts Productivity and Profits eguide eguide Discover How a 360-Degree View of the Customer Boosts Productivity and Profits A guide on the benefits of using

CUSTOMER RELATIONSHIP MANAGEMENT CONCEPTS AND TECHNOLOGIES Chapter 1: Introduction to CRM Selected definitions of CRM 1 CRM is an information industry term for methodologies, software, and usually Internet

Microsoft Dynamics NAV takes over the reins of your company In the wake of your company s needs Competitiveness in the market is increasing, and the pace of business environment s growth requires searching

Learning Objectives Understanding the effects of information systems on business and their relationship to globalization. Explain why information systems are so essential in business today. Define an information

Ten Critical Questions to Ask a Manufacturing ERP Vendor Plex Online White Paper At a Glance: The ERP industry has earned such a poor reputation for delivery in the last 20 years that users have learned